Roth Capital downgrades VersaBank to 'neutral' on slowing loan growth

VersaBank

06/03/2025 16:47

** Roth Capital Partners downgrades U.S.-listed shares of Canadian lender VersaBank VBNK.TO to "neutral" from "buy"

** Brokerage cites continued decelerating loan growth and slower-than-expected U.S. receivable purchase program (RPP) launch behind the downgrade

** Program provides funding to finance companies who lend money to consumers and small businesses

** Cuts VBNK PT to $10.40 from $22, slight downside to stock's last close

** Roth Capital says while net interest margin - a key measure of banking profitability - may have bottomed, any recovery may lag as higher-margin US RPP is slow to materialize

** One of two brokerages rates the stock "buy" or higher and the other "hold"; median PT is $11.20 - LSEG data

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))